Tree Island Steel Ltd T.TSL

15 year high and trading at a 2023 p/e of 5

[lifeisgood1010]

Correction to my previous post, so far they bought back 642090 shares not 517215 under the NCIB or 46%


I am keeping my small position in this company because of the low valuation but there
are currently better company to buy.

My favorite stock and by far is ADF Group symboll DRX on the TSX.

DRX  is winning big contracts because of it's new one of a kind in north america automated 
production line.This new line take only 1/6(one six) of the labour it was taking to do the same work.
This as translated to highly improved margins and contract winning.

There is a lot of infrastructure work for them to bid on.Their order book is growing at a fast pace

Even though DRX as gone up 70% in the last 7 weeks and is trading at a 15 year high it as 
a long way to go.

DRX is trading just under book value, it will earn at least 80 cents / share this year and could earn
more than $1 in 2024.It has a pristine balance sheet and a good portion of it's L:T debt bears no interest(loan from the Quebec gouverment for the new line expansion).

Trading at a 2023 p/e of 5 and a p/e of 2024 of 4.

At a p/e of 7 this stock will be up another 80% before year end.
Even with a p/e of 6, it would still be up more than 50% before year end.

In the last CC. management said that they could announce a second automated line for their
other plant located in Montana in Q3 of this year.

Since this is a very illiquid stock, it will bounced around to diggest the recent run up.

But with every new big contract signing and with the next few quarter results, this stock will
jump.

You just need to be in, be patient and let the market realize how cheap this stock is.also, technically, it's a beauty.this stock was trading at a high of $16 in 2022.
We know the rest but this company is back.It has done a 360 and has transformed itself to a very profitable company over the last 12 months

[pennydredful]

You   have  a typo   here   in   that   DRX    reached    16    in   2002    NOT    2020   ,   however  I thank you for  your  recommendation  . It   is  well  based .

[lifeisgood1010]

Yes, it was a typo.Thanks pennydredful DRX will go up, consolidate and go up again.This is a stock for small investors. They have huge tail wind. On the last CC, M. Paschini hinted at getting a smaller version of their new Zebau automated line for their Montana plant. This machine is expensive but now that they have the experience of their first machine in Terrebone,the learning curve would be a